§ 286cc. — Sustaining economic growth.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC286cc]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 7--INTERNATIONAL BUREAUS, CONGRESSES, ETC.
SUBCHAPTER XV--INTERNATIONAL MONETARY FUND AND BANK FOR RECONSTRUCTION
AND DEVELOPMENT
Sec. 286cc. Sustaining economic growth
(a) Economic adjustment programs
(1) The President shall instruct the Secretary of the Treasury, the
Secretary of State, and other appropriate Federal officials, and shall
request the Chairman of the Board of Governors of the Federal Reserve
System, to use all appropriate means to encourage countries to formulate
economic adjustment programs to deal with their balance of payment
difficulties and external debt owed to private banks.
(2) Such economic adjustment programs should be designed to
safeguard, to the maximum extent feasible, international economic
growth, world trade, employment, and the long-term solvency of banks,
and to minimize the likelihood of civil disturbances in countries
needing economic adjustment programs.
(b) Changes in Fund guidelines; limitations on debt service exceptions
To ensure the effectiveness of economic adjustment programs
supported by Fund resources--
(1) the United States Executive Director of the Fund shall
recommend and shall work for changes in Fund guidelines, policies,
and decisions which would--
(A) convert short-term bank debt which was made at high
interest rates into long-term debt at lower rates of interest;
(B) assure that the annual external debt service, which
shall include principal, interest, points, fees, and other
charges required of the country involved, is a manageable and
prudent percentage of the projected annual export earnings of
such country; and
(C) provide that in approving any economic adjustment
program the Fund shall take into account the number of countries
applying to the Fund for economic adjustment programs and the
aggregate effects that such programs will have on international
economic growth, world trade, exports and employment of other
member countries, and the long-term solvency of banks; and
(2) except as provided in subsection (c) of this section, the
United States Executive Director of the Fund shall oppose and vote
against providing assistance from the Fund for any economic
adjustment program for a country in which the annual external debt
service exceeds 85 per centum of the annual export earnings of such
country, unless the Secretary of the Treasury first determines and
provides written documentation to the Committee on Banking, Housing,
and Urban Affairs and the Committee on Foreign Relations of the
Senate and the Committee on Banking, Finance and Urban Affairs of
the House of Representatives that--
(A) the economic adjustment program converts high interest
rate, short-term bank debt into long-term debt at significantly
narrower interest rate spreads than the average interest rate
spreads prevailing on bank debt reschedulings negotiated between
August 1982 and August 1983 for countries receiving assistance
from the Fund for economic adjustment programs in order to
minimize the burdens of adjustment on the debtor nation,
provided that such interest rate spreads are consistent with
that nation's need to obtain adequate external private
financing;
(B) the annual external debt service required of the country
involved is a manageable and prudent percentage of the projected
annual export earnings of such country; and
(C) the economic adjustment program will not have an adverse
impact on international economic growth, world trade, exports,
and employment of other member countries, and the long-term
solvency of banks.
(c) Emergencies and extraordinary circumstances
The provisions of subsection (b)(2) of this section shall not apply
in any case in which the Secretary of the Treasury first determines and
provides written documentation to the Committee on Banking, Housing, and
Urban Affairs and the Committee on Foreign Relations of the Senate and
the Committee on Banking, Finance and Urban Affairs of the House of
Representatives that--
(1) an emergency exists in a nation that has applied to the Fund
for assistance that requires an immediate short-term loan to avoid
disrupting orderly financial markets;
(2) a sudden decrease in export earnings in the country applying
to the Fund for assistance has increased the ratio of annual
external debt service to annual export earnings, to greater than 85
per centum for a period projected to be no more than one year; or
(3) other extraordinary circumstances exist which warrant
waiving the provisions of subsection (b)(2) of this section.
(July 31, 1945, ch. 339, Sec. 45, as added Pub. L. 98-181, title VIII,
Sec. 806, Nov. 30, 1983, 97 Stat. 1272.)
Change of Name
Committee on Banking, Finance and Urban Affairs of House of
Representatives treated as referring to Committee on Banking and
Financial Services of House of Representatives by section 1(a) of Pub.
L. 104-14, set out as a note preceding section 21 of Title 2, The
Congress. Committee on Banking and Financial Services of House of
Representatives abolished and replaced by Committee on Financial
Services of House of Representatives, and jurisdiction over matters
relating to securities and exchanges and insurance generally transferred
from Committee on Energy and Commerce of House of Representatives by
House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001.
Section Referred to in Other Sections
This section is referred to in section 262r of this title.
